Archer-Daniels-Midland Company (ADM)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 8,259,000 | 7,735,000 | 8,011,000 | 7,885,000 | 7,672,000 |
| Total assets | US$ in thousands | 54,631,000 | 59,774,000 | 56,136,000 | 49,719,000 | 43,997,000 |
| Debt-to-assets ratio | 0.15 | 0.13 | 0.14 | 0.16 | 0.17 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $8,259,000K ÷ $54,631,000K
= 0.15
The debt-to-assets ratio for Archer-Daniels-Midland Company has shown a declining trend over the past five years, indicating improved debt management and increased asset base relative to debt. As of December 31, 2023, the ratio stands at 0.15, which means that for every dollar of assets, the company has 15 cents in debt. This demonstrates a relatively low level of leverage and indicates that the company is primarily financed by equity rather than debt. The decreasing trend in the ratio suggests that the company has been successful in reducing its debt levels or increasing its asset base, both of which are positive signals for investors and creditors. Overall, a low debt-to-assets ratio is generally considered favorable as it signifies lower financial risk and better solvency for the company.
Peer comparison
Dec 31, 2023